Fed Gives Dealers More Time for Dodd-Frank Compliance
Thanks to a ruling on Tuesday by the Federal Reserve Board, dealers — just like lenders — will have a little more breathing room to get their ducks in a row for the data collection requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
The Fed amended Regulation B on Tuesday, meaning that dealers can wait until the board doles out the final regulations for implementing the statutory requirement before they have to be fully compliant with the data collection requirements.
“Dodd-Frank Act amended the Equal Credit Opportunity Act to require creditors to collect information about credit applications made by women- or minority-owned businesses and by small businesses,” the Fed said in a statement. “The Consumer Financial Protection Bureau must implement this provision for all creditors except certain motor vehicle dealers who are subject to the board’s jurisdiction.
“The CFPB previously announced that creditors are not obligated to comply with the data collection requirements until the CFPB issues detailed rules to implement the law,” officials added. “The board is amending Regulation B to apply the same approach to motor vehicle dealers.”
Once the final is published in the Federal Register, it will become effective. The Fed believes this will happen “shortly.”